| Publication: | Sydney Morning Herald |
|---|---|
| Date: | 18 February 2009 |
| Section: | National |
Melissa Jenkins, 18 February 2009
Changes to the Medicare levy surcharge haven't prompted an exodus from private health insurance, according to new figures.
In the three months to December last year, private health insurance membership grew by 54,000 people, or 0.1 percentage points, to hit the highest rate in seven years.
The membership figures, released on Wednesday, are the first since the Medicare levy surcharge threshold was increased from $50,000 to $70,000 for individuals and $100,000 to $140,000 for families.
The data contradicts warnings from treasury and the private health insurance industry that a massive membership decline was likely.
It undermine the industry's push for above-average hikes in premiums to offset the impact of the Medicare levy changes.
Some 44.8 per cent of Australians were covered for private hospital treatment, up from 44.7 per cent three months earlier.
It is the highest proportion of the population with private health insurance recorded since December 2001.
Health Minister Nicola Roxon said the figures demonstrated the private health insurance industry was still strong.
"This growth in membership comes despite widespread claims of a risk of dramatically slumping membership and the crumbling of our public hospitals in the aftermath of these changes," she said.
"This is an encouraging sign considering the difficult global economic circumstances."
The government wanted to set the income levels at which the Medicare surcharge levy kicks in at $75,000 for singles and $150,000 for families.
But it was forced to broker a compromise deal after its initial proposal was held up in the Senate.
